Expenses, income, receipts and payments explained

In KarmaAxis, income and expense records describe bookings, while receipts and payments describe recorded money movements. Related records can appear within Tasks and Karmas. Custom vaults organise balances according to their purpose.

Keep different records distinct

An income booking and a receipt are related concepts, but they do not describe the same event. Similarly, an expense record and a payment need to remain understandable as separate records.

KarmaAxis presents Expenses, Income, Receipts and Payments within the Money context of relevant Tasks and Karmas. Read each group according to what it records. Do not add all four totals together as income, cash or profit.

Relate the record to the work

A fictional service visit may have booked income of ₹30,000, a recorded receipt of ₹15,000, an expense of ₹3,200 and a payment of ₹3,200. Those figures describe separate kinds of records.

Keeping them with the work helps explain the context. The example is illustrative; it is not a profitability calculation or an accounting treatment recommendation.

Understand what a vault represents

Custom vaults organise money activity and balances. A bank or cash vault can have a different meaning from a vault used to track an amount to settle separately.

For that reason, the total of every vault should not automatically be treated as money available to spend. Understand the purpose of the vault and the records that affect it.

Review expenses with context

Expense approval records the reviewed amount. Expense-head correction lets the reviewer correct the category and give a reason for the correction.

Useful categories help people understand recorded expenses. Approval and classification are separate questions: the amount being reviewed and the category it belongs to.

Remember the boundary

Recording a receipt or payment in KarmaAxis does not itself transfer money through a bank. Opening balances and other money records should be set up with an understanding of what the business is recording.

Use a demo to explore the actual flow and the appropriate setup for your needs. Detailed accounting or statutory questions should follow the business’s professional advice and verified requirements.

Explore the related product

See Money & Expenses for expense approval, category correction, custom vaults and related work records. The FAQ covers common product and trial questions.